Time to get a hold...
THE JAMAICAN Government could be called on to pay more than J$133 million to American Airlines as part of a revenue-guarantee airlift agreement signed last November.
American Airlines inked the deal with Jamaican authorities to service the Miami, Dallas and Chicago routes to Montego Bay.
As part of the accord, the United States carrier would transport thousands of passengers to Jamaica.
However, there was a decline in bookings and the airline recorded a shortfall of US$1.5 million up to July 31 this year.
This was confirmed by Lionel Reid, executive director of Jamaica Vacations Limited (JAMVAC), at a meeting of Parliament's Public Administration and Appropriations Committee (PAAC) on Wednesday.
"It can be called (on)," he told committee members. The Tourism En-hancement Fund had provided letters of credit to secure the agreement with the US carrier on behalf of JAMVAC. The total guarantee was set at US$3 million.
A document provided by the Ministry of Tourism highlighted a deficit of over US$1 million (more than J$94 million) for the Dallas operation while the financial out-turn for Miami showed a loss of just over US$570,000 (approximately J$51 million).
However, the airline had a surplus of US$181,107 (J$16.1 million) for its Chicago operation.
Who didn't see this coming.
